AUD 2

Question 1

Audit documentation should?

Answer 1

show that the accounting records agree or reconcile wit the FS

audit documentation is not the support for the financial statement, the books and records are

Question 2

When is the representation letter provided?

Answer 2

at the conclusion of the engagement

Question 3

Using work of internal auditors

Competence is reflected?

Answer 3

by education, professional certification, experience, performance evaluations, audit plan, audit procedures, and the quality of audit documentation

Question 4

Using work of internal auditors

Objectivity is reflected?

Answer 4

lack of independence, the organization level to which internal auditors report

Question 5

entity’s internal control is primarily based on the criterion of?

Answer 5

cost-benefit relationship

Question 6

A “walkthrough” follows a transaction from its origination until it is reflected in the financial statements

Answer 6

also includes inquiry, observation, recalculation, and/or control performance

helps with “design and implementation” of ICs

Question 7

IT and Audit

“Embedded Audit Modules” why do auditors hesitate?

Answer 7

bc they are required to be involved in the design of the system. they are sections of the application code that collect transaction data for the auditor, and are usually built into the system when developed.